PCP Payoff

Mango111

Hi all, did a search but other posts mainly seemed to be focused toward trade ins. Apologies in advance if a repeat.

I bought a VW polo on PCP a year ago. Normally am very money smart with everything else in life (especially with the help of this great website), but I was clueless about cars and needed one in a hurry due to a job. Buyers remorse aside, I’m now in the postition 12 months on where I have the cash to pay off the remaining finance (approx £10.5k). The finance company said this would save me approx £800 in interest over the next two years. Is this a wise decision, and will there be any downsides? (Have paid for GAP insurance, and bodywork and alloy insurance over the three year term too...yes, I know...:rotfl:)

Any advice would be much appreciated. Thanks

neilmcl

If you have the money and want to keep the car then yes, settle the finance.

fatrab

Pay car off, save £800? Sounds like a no-brainer to me.


It's a learning curve with things like gap and the alloy wheel insurance. You'll know better next time, just put it down to experience and move on.


There are a lot worse cars out there to be stuck with than a Polo.


Best wishes

G_M

What's the APR?

If the finance was on a 0% basis, then clearly you'd do better to put yur cash to work elsewhere.

But it seems from what you say that you are paying interest - probably at a rate higher than you'd get in a savings account. If so, pay off the finance.